Market Cues Today: New GST System, Gold Rate Today And Other Triggers Set To Impact D-Street

The headline indices finished higher on Wednesday, September 3 the BSE Sensex closed at 80,567.71 gaining 0.51 per cent on the other hand the Nifty 50 finished the session at 24,715.05 up by 0.55 per cent. On September 4, the Gift Nifty opened higher and is trading around 24,958 up by 0.49 per cent. The headline indices are also expected to start the session with gains amid mostly positive cues.

Stock Market Cues On September 4

Some of the key cues expected to impact D-street on September 4 include the announcement of new GST slabs and fluctuations in crude oil prices and gold rates. Here’s a look at some of the cues:

New GST Rate Slabs

On September 3, the GST Council announced its decision to modify the existing GST structure into a two-rate system. The decisions taken by the GST Council will be in effect from September 22. The new two-rate system includes a 5 per cent slab and a 18 per cent slab. However a 40 per cent slab has also been introduced for sin goods such as tobacco and luxury items.

Sectors To Watch Today

The new GST rates seek to encourage domestic consumption, thus several consumption focused sectors are expected to be in focus today. The reduction of GST on goods such as hair oil, toothpaste, cheese and dairy products to 5 per cent is likely to act as a tail-wind for the FMCG sector.

Additionally the healthcare sector is also expected to be in focus amid a reduction in GST rates for medical devices such as thermometers and corrective spectacles and insurance products such as individual life and health insurance. Further, the GST rate reduction on agricultural machinery and other implements has also been reduced to 5 per cent.

The GST applicable on automobiles and consumer durables has also been reduced to 18 per cent. However, GST on sin-goods and luxury goods has been hiked this includes high-end vehicles, tobacco products, and sugary and caffeinated drinks. These items will now attract a 40 per cent GST.

Crude Oil Prices On September 4

Crude oil prices declined on September 4 as the West Texas Intermediate crude trading at $63.63 down by $0.35 or 0.55 per cent. The price of Brent Crude fell by $0.31 or 0.46 per cent to $67.29.

Gold Rate On September 4

Gold prices gained in the early hours of September 4, the price of one gram of 24 karat gold was around Rs 10,698, the price of one gram of 22 karat purity gold remained around Rs 9,806. The rates for 18 karat purity gold were Rs 8,024 per gram on September 4.

Asian Indices Trade Mixed On September 4

Key Asian indices traded mixed in the early hours of September 4, Hang Seng fell 1.04 per cent and the Shanghai Composite fell 1.76 per cent. At the time of writing the Nikkei 225 and the KOSPI witnessed gains of 1.32 per cent and 0.37 per cent respectively.

US Market Indices

Wall Street indices finished the session mixed with the Nasdaq Composite and the S&P 500 gaining 1.03 per cent and 0.51 per cent respectively. On the other hand the Dow Jones Industrial Average witnessed a decline of 0.05 per cent.